Building permits and construction starts for residential projects in the United States declined by approximately 10% in 2023 versus 2022, according to new data by the U.S. Census Bureau. An estimated 1,469,800 housing units were authorized by building permits in 2023, which is 11.7% lower than in 2022. An estimated 1,413,100 housing units were started in 2023, which is 9% lower than the 2022 figure.

In December 2023, the U.S. saw 1,495,000 building permits issued for privately owned housing units, which is 1.9% above the previous month, and 6.1% above December 2022. Specifically, single-family home permit grants were 1.7% above the previous month, while authorization of units in buildings with five units or more was up 1.3% on the previous month.

With regards to housing starts, December 2023 saw commencement on 1,460,000 units, which is 4.3% below November 2023 but 7.6% above December 2022. Single-family housing starts numbered 1,027,000 units, which is 8.6% below the previous month, while commencement of units in buildings with five units or more was up 7.4% on the previous month.

For completions on private residential units, December 2023’s 1,574,000 number was 8.7% above November’s figure and 13.2% above December 2022. Single-family housing completions numbered 1,056,000 which is 8.4% above November, while completion of units in buildings with five units or more was up 11.1% on the previous month.

The latest figures come in the same week that construction input prices dropped in December, driven by a decline in all sectors. Earlier this month, we reported on a new listing of New York City’s busiest architecture firms, while also covering a slight dip in nonresidential construction.